Federal and state regulators have closed Irwin Union Bank FSB, Louisville, Ky., and Irwin Union Bank and Trust Co., Columbus, Ind. Both institutions are banking subsidiaries of Irwin Financial Corp., and their failures bring the number of bank failures this year to 94.
The Federal Deposit Insurance Corp. (FDIC), as receiver, entered into a purchase and assumption agreement with Hamilton, Ohio-based First Financial Bank NA to assume all of the deposits of the two banks.
As of Aug.31, Irwin Union B&T had total assets of $2.7 billion and total deposits of approximately $2.1 billion, and Irwin Union Bank had total assets of $493 million and total deposits of approximately $441 million.
First Financial Bank will pay the FDIC a premium of 1% to assume all of the deposits of Irwin Union B&T and 0% for those of Irwin Union Bank. First Financial Bank has also agreed to purchase essentially all of their assets.
The FDIC and First Financial Bank entered into a loss-share transaction on approximately $2.5 billion of the assets.
The FDIC estimates that the cost to the Deposit Insurance Fund for both institutions will be $850 million.